Positioning Nelson Mandela Bay for Renewable Energy Manufacturing Opportunities

Transcription

1 Positioning Nelson Mandela Bay for Renewable Energy Manufacturing Opportunities Presented to Nelson Mandela Bay Business Chamber Ibhayi Town Lodge, Port Elizabeth 16 th March 2012 Presented by Davin Chown

2 Who we are Mainstream Renewable Power is a leading global renewable energy developer with a portfolio of over 15,000MW of wind and solar projects across eight countries. Mainstream South Africa, a Joint Venture with Genesis Eco Energy has been active since 2009 developing over 4,000MW of wind and solar projects in the Eastern, Northern and Western Capes. In December 2011, a consortium led by Mainstream was awarded preferred bidder status by the Department of Energy in South Africa to deliver 138MW of wind energy and 100MW of solar PV into commercial operation by This partnership is unique and teams the local knowledge, development skills and relationships of Genesis Eco-Energy with the core global strengths of Mainstream Renewable Power. These global strengths are in the areas of finance, engineering and procurement where Mainstream has a strong track record in delivering largescale renewable energy plants around the world.

3 Background - A Project with a long history in SA Kouga Wind Farm proposed on part of Sunnyside dairy farm, outside Jeffrey s Bay in 2002 Municipality very supportive - represented along with DBSA and Eskom on the project Steering Com established in 2003 EIA Authorisation received in March 2009 for 16 MW Proponent local company - Genesis Eco Energy Project has since expanded into the 138MW Jeffrey s Bay Wind farm when JV formed between Genesis Eco Energy and international development company Mainstream Renewable Power in March 2009

4 Stop-start Energy Programmes Courtesy: Meridian Economics

5 Key Challenges The LTMS

6 New capacity (GW) Our New Energy Path IRP 2010 Existing and committed capacity 2010 fleet (41.8 GW) 35,5 1,8 2,1 0,0 2,4 0,0 Committed build (12.1 GW) Planned capacity 25 10,1 0,0 0,05 0,0 1,0 1,0 Coal Nuclear Hydro Gas - CCGT Peak - OCGT Renewables New capacity (%) % 23% 6% 6% 9% 42% 17, ,3 Coal 9,6 Import 2,6 2,4 Nuclear Hydro Gas - CCGT 3,9 Peak - OCGT 8,4 1,0 8,4 Renewables Solar PV CSP Wind Resulting energy mix 2010 Energy (260 TWh) 2030 Energy (454 TWh) 90% 5% 5% 0% < 0,1% 0% 65% 20% 5% 1% < 0,1% 9%

7 The Slow Awakening Economic RE-direction - The Green Economy Driven by the Deputy President s Office RE is central theme National Planning Commission: Low Carbon Economy DPE, DTI: SARI & significant impacts on SA trade situation DEA : LTMS DoE :IRP 2010 Reshaping the energy landscape EDI failure ISMO (DoE confirmation) RE IPP Procurement Process a win for all?

8 Conquering the Low Carbon Divide National Planning Commission Diagnostic and NDP Defines the key Challenges we face across society Recognises that we are doing this in the context of a carbon constrained future Clear in what we need to do to get SA on track and create a long term viable, stable future Recognises the key ailments in society and the need for redirecting the economy BUT... Low Carbon Economy transition, economic growth, and poverty reduction

9 % Share The Manufacturing Challenge and our Growth Path Contribution to national GDP Primary sector (Agriculture & Mining) Secondary sector (incl. Manufacturing) Tertiary sector SA economy increasingly dominated by servicesrelated sectors - in line with international trends. Share of the manufacturing sector - the 2nd largest sector of the economy - decreased sharply since the early 1990s in light of globalisation, trade liberalisation and an increasingly challenging global trading environment. Source: SARB Courtesy: The DTI,2012

10 The Promise and the Potential Technology Onshore Wind Solar Photovoltaic Solar CSP Without Storage Local Content First Bid Second Bid Third Bid Submission Date Submission Date Submission Date Current Current Target Threshold 25% 45% 25% 60% 40% 65% Threshold Target Threshold Target 35% 50% 35% 60% 45% 65% 35% 50% 35% 60% 45% 65% CSP with 25% 45% 25% 60% 40% 65% storage Biomass 25% 45% 25% 60% 40% 65% Biogas 25% 45% 25% 60% 40% 65% Landfill gas 25% 45% 25% 60% 40% 65% Small scale hydro 25% 45% 25% 60% 40% 65% 25% 45% 25% 60% 40% 65%

11 A R120bn Programme Local Economic Benefits Operation yrs Construction 18 months Development Development Trust ED support SED support Permanent Jobs Support to emerging farmer Income to landowners Local services Stability of grid Electricity supply Tourism Temporary Jobs Temporary Services Upgrade of certain infrastructure Local Procurement of goods & services Local spend Support to local projects Exposure

12 Major Industry Initiatives Rapid Scale-Up Signing of the Green Accord 70% local content as aspirational target jobs by 2025?? SA PV Industry Association and DTI co-funding a localisation strategy plan Solar roof-top programme to look at roof tops SA Wind Energy Association and DTI Task team to look at local towers and components higher cost vs local content Rapid step-wise increase go beyond BOP back along value chain = towers, turbines, components, blades, Can we do concrete towers impact on finance, performance, etc Can we do this off 1850 MW wind and 1450 PV and 200MW CSP, in the absence of long term targets what will IRP2012 do to help create the new path

13 Where to from here? NMB Business Chamber in a good position Three of the large wind farms allocated to Eastern Cape J Bay, Oyster Bay, Cookhouse and more to come But manufacturers locating in the Western Cape? At Munic level SWH and EE roll-out to kick-start PV Rooftop programme? Policy and industrial investment direction Participation in the new SA Renewable Energy Council Direct engagement with DTI and building of incentive schemes and investment promotion Shape the direction of new policy Participate in the DTI/SAPVIA studies? How to promote Mandela Bay and regional infrastructure at centre of the RE development and investment hub help create the climate. Can you campiagn??

14 Thank You for Your Time Davin Chown Mainstream Renewable Power South Africa Mobile: or SA PV Industry Association: SA Wind Energy Association: